Export Instability and Economic Growth in Sub Sahara African Countries
No Thumbnail Available
Date
1999-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The study attempts to investigate the impact of uncertainty generated by export earning
instability on economic growth. Through this investigation the degree to which outward
oriented economic policy will be reliable for the purpose of accelerating economic growth is
also be examined.
After detail review of theoretical and empirical foundation of the policy, a model that links
variable of uncertainty to economic performance is developed. Moreover, from the model, the
condition under which outward oriented economic policy contributes favourably, to economic
growth is set theoretically. Furthermore, the model and the conditions were estimated based on
available statistical data.
From the estimates, it can be inferred that, to benefit from outward oriented economic policy in
terms of economic growth, the stable component of export revenue of the region has to grow
substantially. if this condition is not satisfied the policy acts adversely on economic
performance. Lastly, if the condition cannot be met and the adverse effect is not affordable, the
estimates indicate that there should exist an external mechanism that absorbs the growth of
uncertainty coming from international trade.
Description
Keywords
African countries, Growth in sub sahara, Economic growth